Risk Management

OTC Clear’s risk management framework is designed to ensure the financial performance of all contracts cleared by OTC Clear by adequately controlling credit, market and liquidity risks.

The key components of the risk management framework include:

Clearing Membership Requirements

Initial Margin

Variation Margin & Margin Call

Participating Margin (Applicable to Swap Connect only)

Credit Risk Monitoring

Financial Resources and Default Management

Collateral Management

OTC Clear conducts independent validation of its risk management framework and measures annually.